Almost three months after Mohit Goel was arrested on allegations of fraud, the Ringing Bells Managing Director has gotten bail form the Allahabad High Court. Ghaziabad-based Ayam Enterprises alleged that Goel ‘defrauded’ the company of Rs 16 lakh. Goel was arrested in February in Uttar Pradesh.
As per FIR filed by Ayam Enterprises, the company was approached by Ringing Bells to take up the distributorship of the Rs 251 smartphone – Freedom 251 – in November. While Ayam Enterprises paid Rs 30 lakh to Ringing Bells, they got products worth Rs 13 lakh only, according to the FIR. “Upon follow-up, we could get products plus money totaling Rs 14 lakh,” it reads.
“Honorable court pronounced that it has found no criminal offence committed by accused in the alleged case and the case pertains to normal business transaction. It was also observed by the court that a compromise has already been agreed upon between the parties involved in the case,” Ringing Bells said in a press statement. Meanwhile, Director Sumit Kumar got bail as well.
Ringing Bells launched Freedom 251, dubbed as the world’s cheapest smartphones, costing Rs 251. The company claims to have received about 7.5 crore orders for Freedom 251. While, the company says it has delivered 70,000 units of the smartphone, there’s no word on when the remaining orders will be fulfilled.
Ringing Bells earlier sought help from PM Narendra Modi in order to deliver all units of Freedom 251. Goel demanded Rs 50,000 crore from the government under the Digital India initiative in a letter to Modi. The company even launched several new devices, including Freedom HD LED TV in early July. Meanwhile, the company launched new devices including smartphones, power banks and Freedom LED TV, which is being dubbed as India’s cheapest LED TV.